Both of these legal documents are extremely important to have. They are essential to having control over your assets either before or after death. However, wills and trusts are two very different documents and it is important to know which one would be best for you as our Arlington, TX estate litigation lawyer can explain.
Wills
A will is a legal document that states how a person’s assets, their property and debts, should be distributed after their death. A will can help navigate probate and can help avoid problems within your family about the division of your assets. A will involves naming an executor. This person will execute your assets and property once you have passed and the will takes effect. A will must be revised every five years or even sooner if there have been significant changes like divorce, marriage, new home, or new child. All in all a will only takes effect after the person has passed, until then it is just a document.
Trusts
A trust is also a legal document that allows you to decide how your assets will be distributed. A trust is essentially a legal entity created to control your assets. Lengthy court proceedings can be avoided because with a living trust, a trustee is appointed. The trustee will distribute them according to your wishes. Trusts provide a lot of extra benefits as well including, tax benefits, privacy, and care for family members who are ill or have special needs as a lawyer who was rated a top attorney by Fort Worth magazine can explain.
The Difference
Wills and Trusts both sound very familiar, that is because both of them essentially have almost the same goal. However, you can actually implement a trust within a will, which showcases how different they are. In fact, the differences lie in the specifics.
- A will, as said before, only takes effect after the person passes. A trust however can take effect during the person’s lifetime, after death, or when death occurs.
- A will goes through probate, which can be a lengthy court process. Trusts however can avoid probate and the family can get the assets faster. Even though with a will probate is necessary, having a will is still important because it makes the probate go by much smoother.
- Both documents can be created with or without a lawyer, however trusts are more expensive than wills.
- Wills require updates every 3-5 years, or as life changing events take place. Trust requires ongoing updates.
- A will is used to appoint guardians for children, appoint executors, and declare final wishes or wills. A trust is to make the distribution process of the assets quicker, reduce legal fees, reduce estate taxes, and maintain privacy.
- A will is public information once passed through probate, trust maintained private.
A will and trust can also be combined. The act of combining them uses a pour-over will. A pour over will is where any assets not placed in your trust while in your lifetime can be transferred after death, essentially “ pouring over” assets. This option is preferable to many to maintain the privacy of their heirs. It is crucial to speak to an attorney when making decisions about life whether to have a trust or will, or having a pouring over will. Whether you opt for a trust or a will, an estate attorney will help you better navigate the pros and cons of each option according to your assets and property. Schedule a consultation with a lawyer rated by SuperLawyers at Brandy Austin Law Firm today for help.
